Petro Vista Energy Corp.

Petro Vista Energy Corp.

February 07, 2012 09:00 ET

Petro Vista Completes Sale of Interest in Morichito Block, Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2012) - Petro Vista Energy Corp. (TSX VENTURE:PTV) ("Petro Vista" or the "Company") is pleased to announce that its wholly-owned Barbados subsidiary, Petro Vista Energy Colombia (Barbados) Corp. ("PTV Barbados"), has completed the sale (the "Transaction") of all of the issued capital of Petropuli Ltda. ("Petropuli"), Petro Vista's indirect Colombian subsidiary, previously announced on December 8 and December 19, 2011 and January 24, 2012. The capital of Petropuli, which owns a 50% participating interest in the Morichito Block located in the Llanos Basin, Colombia, was acquired by Deep Core Inc. ("Deep Core").

Pursuant to the Transaction, as amended, Deep Core acquired the Petropuli capital for an aggregate of US$1.75 million. Of this amount, US$800,000 had previously been advanced by Deep Core to fund outstanding cash calls owing by PTV Barbados in respect of Block SSJN-5, located in the Middle Magdalena Basin and $369,535 was paid to settle outstanding costs associated with the closing of the Transaction. The balance of US$580,465, together with an additional US$200,209 that had previously been advanced by the Company to fund certain ANH guarantees for exploration work, for a total of US$780,674, was placed into escrow by Deep Core. US$200,000 of the funds held in escrow will be released in three months, and the balance will be released in six months, subject only to payments from the escrow proceeds that may be required to be made in respect of outstanding employment liabilities and any undisclosed past obligations of Petropuli, or liabilities arising from the non-delivery of certain post-closing deliverables.

The sale does not include Petropuli's 25% participating interest in Block SSJN-5, which will be transferred to a Petro Vista affiliate. Also, as a result of the closing of the Transaction, PTV Barbados is released from its obligations under the Advance Payment Agreement with Deep Core, previously announced on December 19, 2011, and Deep Core's security over Block SSJN-5 and PTV Barbados' rights in the La Maye Block is terminated. Pursuant to the same Advanced Payment Agreement Deep Core holds an exclusive option to acquire the Company's 25% participating interest in the La Maye Block, Colombia that expires on April 2, 2012.

In announcing the completion of the sale of the Petropuli shares, Petro Vista Chairman Keith Hill commented, "The sale of the Morichito property is the first step in Petro Vista's business plan to rationalize its Colombian oil and gas interests, allowing the Company to focus on the development of its Tartaruga producing asset in Brazil. The proceeds from the sale of Petropuli will also be directed towards pre-drill costs in the SSJN-5 Block."

About Petro Vista Energy

Petro Vista Energy Corp. is an oil and gas exploration company with near-term production opportunities in South America. The Company has exploration, development and production rights in Brazil and Colombia. The Company's goal is to build an upstream oil and gas company with exploration and production focused in the highest resource potential and commercially attractive countries in South America. The Company's website at provides additional information about the Company's plans, including photographs and other information with respect to its operations and assets.


Keith Hill, Chairman of the Board of Directors

This press release includes "forward-looking statements" including expectations for future operations that subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding the Company's plans and expectations for exploration and development of its Tartaruga Block, future growth of the Company, exploration success, future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling, completion and production risks, equipment failure, availability of labor, unexpected geological or other effects, regulatory changes and availability of capital. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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